Discounts when negotiating a New Motorhome

[Old_Dog]

It’s been a while since we purchased our last motorhome (2018). What with all the new technology available, we are now looking again. In 45 years of RVing we have always managed a 25-33% discount on a new motorhome purchase. On our last motorhome, after extensive negotiation, we achieved a 29% discount off MSRP. I realize that a lot has happened in the RV industry, especially since COVID, so I am wondering what kind of discount can be currently negotiated. All input is greatly appreciated, as the saying goes: "Life is full of possibilities. You just need to know where to look." TIA

[OldBaldFat]

Holiday World in Katy website shows a 25% discount from MSRP for a 2024 Ventana 4369, same discount on a 2024 Ventana 4037.

In general, across several retailers - the web site price for new 2024 Class A motorhomes of that level tends to be 25%. New 2023 models tend to be closer to a 30% discounted price.

Now some dealers like North Trail RV, don't show any discounted price without some contact. Only in very rare occasions.

General RV's larger Newmar outlet - Orlando - formerly Independence RV - is showing a 25% discount of retaining 23 and 24 models.

I've seen almost no discounted prices posted on that level of diesel pushers for the 2025 model years.

NIRVC Atlanta recently updated the price on a 2025 Fleetwood Palisade 45DS to show a 31% discount.

Most of the 2025 REV Group built motorhomes are showing similar discounts.

Brett Davis, owner/founder of NIRVC wrote a long post on the Newmar section of these forums about the everchanging retail environment, and how the industry kind of deals with that. You might want to look it up.

One point is that in 2020 and into 2021, as the great surge in RV purchases and ownership after COVID, manufacturers and dealers were able to get close to MSRP because the demand for new rigs was so high.

In 22, 23 and now - the demand is closer to historical levels, and manufacturers are having to scale back production that they built up quickly when they were allowed to fully return to building after the lockdowns of 2020.

[NXR]

Motorhome sales are in the literal toilet and have been for two years, and getting worse. While dealers are advertising about 26% that's just the starting point. You could do 35% on a 2025 or better on a 2024. I've seen some 2024's advertised in the low 40% range.

The first rule of negotiation:

If you don't ask for it the answer is always NO.

You have no idea of the seller's true motivations or needs. Even if you offer something insulting they can counteroffer. If they don't counter then all that has happened is you heard the word No. Walk and go talk to someone else.

Even better, ask about ordering a new one. If the dealer really wants to unload their stock they'll do better on that in-stock price. Just pretend it's not exactly what you want.

On orders dealers have no carrying costs because nothing is sitting there eating cash. So they get a sale profit, in three or four months, but that one sitting on the lot is getting older and eating more of their cash.

And always consider their financing. They make a lot on their kickback. If you walk in and tell them Cash Is King they know you have a lot of cash to give them plus they lose their kickback. It ain't like the old days when cash got you the best price.

Ray

[Cat320]

FWIW, a reliable source told me to find the retailer's cost, take the MSRP and divide by 1.4.

[NXR]

Originally Posted by Cat320

FWIW, a reliable source told me to find the retailer's cost, take the MSRP and divide by 1.4.

Perhaps for some manufacturers but that's pretty low. 200K divided by 1.4 equals 143K.

143K divided by 200K equals about a 28% discount.

Some manufacturers have a limit on what a dealer can advertise but the dealer can sell for less with a personal contact. It's called MAP or Minimum Advertised Price.

MAP is designed to set the hook but have the personal contact reel the buyer in by offering lower in-person pricing. This often fools the buyer into thinking they are a good negotiator and puts them in a better (more gullible) mindset to spend the cash..

Ray

[RV_Lee]

I'd be aiming for 40%

[jaydee325]

As OldBaldFat suggested, find Brett Davis' excellent post on RV pricing.

If I was shopping today, anything on the dealer lot, I'd start negotiating at 40 to 45% off MSRP, especially at end of year.

On a custom order coach, I'd start at 35%.

These numbers are not out of line with what Brett suggested.